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Monday, March 4, 2024

Dubai Islamic Bank Reports 18% Surge in Net Profit to Dh4.8 Billion in the Third Quarter

Dubai Islamic Bank (DIB) announced a robust financial performance for Q3 2023. The group’s net profit reached Dh4,823 million, marking a substantial 17.6% year-on-year increase compared to Dh4,101 million. This impressive growth was attributed to rising core revenues, non-funded income, and reduced impairment charges.

Strong Balance Sheet

DIB’s balance sheet has expanded significantly, showing an 8.7% year-to-date growth to surpass Dh313 billion. Customer deposits increased by 11.2% year-to-date, with Current Account and Savings Account (CASA) deposits comprising 37% of the bank’s deposit base.

Impairment Charges and Efficiency

Impairment charges were reported at Dh1,409 million, down by 3.0% compared to the first nine months of 2022. The cost-to-income ratio improved to 26.5%, reflecting a 20 basis points reduction year-on-year and stability quarter-on-quarter.

Strong Liquidity and Capitalization: Islamic Bank

DIB maintains healthy liquidity, with a Liquidity Coverage Ratio (LCR) at 166%. Capitalization levels remain robust, with Common Equity Tier 1 (CET1) at 13.6% (up by 70 basis points year-to-date) and Capital Adequacy Ratio (CAR) at 18.1% (up by 50 basis points year-to-date), exceeding regulatory requirements. The total equity now stands at Dh46 billion.

Leadership’s Perspectiv

Mohammed IbrahimAl Shaibani, Chairman of Dubai Islamic Bank, highlighted the UAE’s strong economy and the bank’s remarkable performance, generating over Dh14.5 billion in total income, marking a 47% year-on-year growth. He also expressed the bank’s commitment to climate initiatives and sustainability goals, in line with the approaching COP28 in Dubai.

Dr. Adnan Chilwan, CEO of DIB, emphasized the focus on national projects and the positive impact on the economy, leading to significant financial growth. DIB’s gross new financing and sukuk underwriting reached Dh72 billion, a 69% year-on-year increase. He highlighted the bank’s commitment to sustainability and its role in driving economic and social growth in the UAE.

DIB’s performance in Q3 2023 demonstrates its resilience and commitment to sustainable growth and financial stability.

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